|                  Delaware | 11-2895590                           |
|-----------------------------------------------------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization)                                            | (I.R.S. Employer Identification No.) |
|                                                                                                      |                                 |

| 13450 West Sunrise Boulevard, Suite 510, Sunrise, FL | 33323      |
|------------------------------------------------------|------------|
| (Address of principal executive offices)             | (Zip Code) |

| Registrant’s telephone number, including area code | (631) 873-2900 |
|----------------------------------------------------------|----------------|

|                      Large accelerated filer [ ] | Accelerated filer [  ] |
|------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|
|                      Non-accelerated filer [ ]   | Smaller reporting company [X]    |
|                                                                                                                                                 |                             |

----

| PART I – FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Page           |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |           |
| Item 1. Financial Statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |           |
|      Condensed Consolidated Balance Sheets as of September 30, 2010 (Unaudited) and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |           |
|      December 31, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 3              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |           |
|      Condensed Consolidated Statements of Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |           |
|      For the Three and Nine Months Ended September 30, 2010 and 2009 (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 4              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |           |
|      Condensed Consolidated Statements of Cash Flows                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |           |
|      For the Nine Months Ended September 30, 2010 and 2009 (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 5              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |           |
|      Notes to Condensed Consolidated Financial Statements (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 6              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |           |
|      Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 13             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |           |
|      Item 3. Quantitative and Qualitative Disclosure About Market Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 17             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |           |
|      Item 4T. Controls and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 17             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |           |
| PART II – OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |           |
|      Item 6. Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 19             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |           |
|      Signatures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 20             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |           |
| CERTIFICATIONS                                                                                                                                  |  Exhibits |

----

CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                                                                                                                               |   September 30, 2010 |            | December 31, |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|-----------------|--------------|
|                                                                                                                                                                                                                                                               | (Unaudited)                    |            |  2009   |
| ASSETS                                                                                                                                                                                                                                                             |                           |            |         |
| Current assets                                                                                                                                                                                                                                                     |                           |            |         |
|   Cash and cash equivalents                                                                                                                                                                                                                              | $                              | 1,629           |         | $ | 1,758 |
|   Accounts receivable, net of allowance for doubtful accounts of   $0 in 2010 and 2009                                                                                                                                                    |                           | 1,709           |         |   | 1,296 |
|   Deferred tax asset – current                                                                                                                                                                                                                     |                           | 750             |         |   | 750 |
|   Prepaid expenses and other current assets                                                                                                                                                                                                              |                           | 77              |         |   | 76 |
|                                                                                                                                                                                                                                                               |                           |            |         |   |   |   |
| Total current assets                                                                                                                                                                                                                                               |                           | 4,165           |         |   | 3,880 |
|                                                                                                                                                                                                                                                               |                           |            |         |   |   |   |
| Property and equipment, net                                                                                                                                                                                                                                        |                           | 410             |         |   | 397 |
| Deferred tax asset                                                                                                                                                                                                                                                 |                           | 2,117           |         |   | 2,117 |
| Other assets                                                                                                                                                                                                                                                       |                           | 223             |         |   | 226 |
|                                                                                                                                                                                                                                                               |                           |            |         |   |   |   |
|          TOTAL ASSETS                                                                                                                                                                                                 | $                              | 6,915           |         | $ | 6,620 |
|                                                                                                                                                                                                                                                               |                           |            |         |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                         |                           |            |         |   |   |   |
| Current liabilities                                                                                                                                                                                                                                                |                           |            |         |   |   |   |
|   Accounts payable and accrued expenses                                                                                                                                                                                                                  | $                              | 1,614           |         | $ | 1,444 |
|   Current portion of capital lease obligations                                                                                                                                                                                                           |                           | 1               |         |   | 6 |
|   Current portion of notes payable                                                                                                                                                                                                                       |                           | 211             |         |   | 177 |
|   Warrant liability                                                                                                                                                                                                                                      |                           | --         |         |   | 221 |
|   Dividends payable                                                                                                                                                                                                                                      |                           | --         |         |   | 26 |
|   Deferred revenue                                                                                                                                                                                                                                       |                           | 70              |         |   | 75 |
|                                                                                                                                                                                                                                                               |                           |            |         |   |   |   |
| Total current liabilities                                                                                                                                                                                                                                          |                           | 1,896           |         |   | 1,949 |
|                                                                                                                                                                                                                                                               |                           |            |         |   |   |   |
| Notes payable, net of current portion                                                                                                                                                                                                                              |                           | 121             |         |   | 143 |
|                                                                                                                                                                                                                                                               |                           |            |         |   |   |   |
| Total liabilities                                                                                                                                                                                                                                                  |                           | 2,017           |         |   | 2,092 |
|                                                                                                                                                                                                                                                               |                           |            |         |   |   |   |
| Series C Redeemable Preferred stock, 0 shares issued and outstanding in 2010 and 1,000 shares issued and outstanding in 2009; liquidation preference of $1,000,000                                                                                                 |                           | --    |         |   |   1,000  |
| Commitments and contingencies                                                                                                                                                                                                                                      |                           |            |         |   |   |   |
|                                                                                                                                                                                                                                                               |                           |            |         |   |   |   |
| Shareholders’ equity                                                                                                                                                                                                                                         |                           |            |         |   |   |   |
|  Preferred stock, $0.0001 par value; 2,000,000 shares authorized;Series D Redeemable Preferred, 0 shares issued and outstanding in 2010 and 100 shares issued and outstanding in 2009; liquidation preference of $100,000.                                    |                           | --              |         |   |   -- |
| Common stock, $0.0001 par value; 50,000,000 shares authorized;  11,637,633  and 11,216,158  shares issued in 2010 and 2009, respectively; and 11,597,706  and 11,176,231 shares outstanding in 2010 and 2009, respectively |                           |    1  |         |   |    1 |
| Additional paid-in capital                                                                                                                                                                                                                                         |                           | 114,855         |         |   | 114,559 |
| Accumulated deficit                                                                                                                                                                                                                                                |                           | (109,630        | )            |   | (110,704) |
|                                                                                                                                                                                                                                                               |                           | 5,226           |         |   | 3,856 |   |
| Common stock in treasury, at cost  - 24,371 shares                                                                                                                                                                                                       |                           | (328            | )            |   | (328) |   |
| Total shareholders’ equity                                                                                                                                                                                                                                   |                           | 4,898           |         |   | 3,528 |
|                                                                                                                                                                                                                                                               |                           |            |         |   |   |   |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                   | $                              | 6,915           |         | $ | 6,620 |

----

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

|   |   |   |   |   |   |
|--------|--------|--------|--------|--------|--------|
|   |   |   |   |   |   |

|                                                                                  |   | Three Months Ended |         |   | Nine Months Ended |   |
|---------------------------------------------------------------------------------------|--------|--------------------|--------------|--------|-------------------|--------|
|                                                                                  |   | September 30,      |         |   | September 30,     |   |
|                                                                                  |   | 2010               |         |   | 2009              |   |   | 2010 |   |   | 2009 |   |
|                                                                                  |   |               |         |   |              |   |   |   |   |   |   |   |
| Revenue                                                                               |   | $                  | 2,316        |   |              | $      | 2,474 |   |   | $ | 7,210 |   |   | $ | 7,648 |   |
|                                                                                  |   |               |         |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Costs and expenses                                                                    |   |               |         |   |              |   |   |   |   |   |   |   |   |   |   |   |
|   Operations, research and development                                      |   |               | 818          |   |              |   | 862 |   |   |   | 2,620 |   |   |   | 2,735 |   |
|   Sales and marketing                                                       |   |               | 422          |   |              |   | 364 |   |   |   | 1,296 |   |   |   | 1,061 |   |
|   General and administrative                                                |   |               | 717          |   |              |   | 567 |   |   |   | 2,189 |   |   |   | 1,947 |   |
|   Depreciation and amortization                                             |   |               | 64           |   |              |   | 87 |   |   |   | 201 |   |   |   | 277 |   |
|                                                                                  |   |               | 2,021        |   |              |   | 1,880 |   |   |   | 6,306 |   |   |   | 6,020 |   |
|                                                                                  |   |               |         |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                                      |   |               | 295          |   |              |   | 594 |   |   |   | 904 |   |   |   | 1,628 |   |
|                                                                                  |   |               |         |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Other (income) expense                                                                |   |               |         |   |              |   |   |   |   |   |   |   |   |   |   |   |
|   Change in fair value of warrant liability                                 |   |               | --           |   |              |   | 101 |   |   |   | (221 | ) |   |   | 158 |   |
|   Other income, net                                                         |   |               | (1           | )      |              |   | (1 | ) |   |   | (27 | ) |   |   | (1 | ) |
|   Interest expense, net                                                     |   |               | 3            |   |              |   | 6 |   |   |   | 16 |   |   |   | 19 |   |
|                                                                                  |   |               |         |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income  before provision income tax                                         |   |               | 293          |   |              |   | 488 |   |   |   | 1,136 |   |   |   | 1,452 |   |
|                                                                                  |   |               |         |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Provision for  income taxes                                                 |   | --                 |         |   | 23                |   |   |   | 20 |   |   |   | 55 |   |
|                                                                                  |   |               |         |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                            |   |               | 293          |   |              |   | 465 |   |   |   | 1,116 |   |   |   | 1,397 |   |
|                                                                                  |   |               |         |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Preferred stock dividends                                                             |   |               | ---          |   |              |   | (50 | ) |   |   | (42 | ) |   |   | (208 | ) |
|                                                                                  |   |               |         |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net income  attributable to common shareholders                             |   | $                  | 293          |   |              | $      | 415 |   |   | $ | 1,074 |   |   | $ | 1,189 |   |
|                                                                                  |   |               |         |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic  income  per share attributable to common shareholders |   | $                  | 0.03         |   |              | $      | 0.04 |   |   | $ | 0.09 |   |   | $ | 0.11 |   |
|                                                                                  |   |               |         |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Diluted income  per share attributable to common shareholders          |   | $                  | 0.03         |   |              | $      | 0.04 |   |   | $ | 0.09 |   |   | $ | 0.11 |   |
|                                                                                  |   |               |         |   |              |   |   |   |   |   |   |   |   |   |   |   |
|  Basic weighted average common shares outstanding                                |   |               |  11,563 |   |              |   |  10,878 |   |   |   |  11,426 |   |   |   |  10,783 |   |
|                                                                                  |   |               |         |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Diluted weighted average common shares outstanding                                    |   |               |  11,695 |   |              |   |  11,300 |   |   |   |  11,628 |   |   |   |  11,137 |   |

----

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                     |   | 2010   |    |   | 2009   |   |
|------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Cash flows from operating activities                                                     |   |   |    |
|  Net income                                                                         |   | $      | 1,116   |   |   | $      | 1,397 |   |
|  Adjustments to reconcile net income  to net cash provided by operations: |   |   |    |   |   |   |   |   |
|                                                                                     |   |   |    |   |   |   |   |   |
|     Amortization and depreciation                                    |   |   | 201     |   |   |   | 277 |   |
|     Stock based compensation expense                                 |   |   | 404     |   |   |   | 430 |   |
|     Change in fair value of warrant liability                        |   |   | (221)   |   |   |   | 158 |   |
|    Changes in operating assets and liabilities:                           |   |   |    |   |   |   |   |   |
|     Accounts receivable                                              |   |   | (413)   |   |   |   | 265 |   |
|     Prepaid expenses and other assets                                |   |   | (1)     |   |   |   | 57 |   |
|     Accounts payable and accrued expenses                            |   |   | 170     |   |   |   | (96) |   |
|     Deferred revenue                                                 |   |   | (5)     |   |   |   | 107 |   |
| Net cash provided by operations                                                          |   |   | 1,251   |   |   |   | 2,595 |   |
|                                                                                     |   |   |    |   |   |   |   |   |
| Cash flows used in investing activities:                                                 |   |   |    |   |   |   |   |   |
|     Expenditures for property and equipment                          |   |   | (60)    |   |   |   | (43) |   |
|                                                                                     |   |   |    |   |   |   |   |   |
| Cash flows from financing activities:                                                    |   |   |    |   |   |   |   |   |
|     Redemption of preferred stock                                    |   |   | (1,100) |   |   |   | (974) |   |
|     Stock repurchase                                                 |   |   | (8)     |   |   |   | --- |   |
|     Payment of dividends on preferred stock                          |   |   | (68)    |   |   |   | (282) |   |
|     Proceeds from issuance of shares on exercise of warrants         |   |   | ---     |   |   |   | 100 |   |
|     Principal payments on capital lease obligations                  |   |   | (5)     |   |   |   | (5) |   |
|     Repayments of long-term debt                                     |   |   | (139)   |   |   |   | (128) |   |
| Net cash used in financing activities                                                    |   |   | (1,320) |   |   |   | (1,289) |   |
|                                                                                     |   |   |    |   |   |   |   |   |
| Net (decrease)  increase in cash and cash equivalents                          |   |   | (129)   |   |   |   | 1,263 |   |
|                                                                                     |   |   |    |   |   |   |   |   |
| Cash and cash equivalents – beginning of period                                    |   |   | 1,758   |   |   |   | 980 |   |
|                                                                                     |   |   |    |   |   |   |   |   |
| Cash and cash equivalents – end of period                                          |   | $      | 1,629   |   |   | $      | 2,243 |   |

| Cash paid for interest                                                        |   | $                        |  20        |   |   |  $ |          44 |   |
|-------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|-----------------|--------|--------|---------|----------------------------------------------------------|--------|
| Cash paid for income taxes                                                    |   | $                        |  26        |   |   |  $ |          14 |   |
|                                                                          |   |                                                                            |            |   |   |    |                                                     |   |
| Non-cash investing and financing activities:                                  |   |                                                                            |            |   |   |    |                                                     |   |
|                                                                          |   |                                                                            |            |   |   |    |                                                     |   |
| Acquisition of equipment through issuance of debt                             |   | $                                  |   151 |   |   |  $ |         55       |   |
| Dividends accrued and unpaid                                                  |   | $              |   --  |   |   |  $ |      50                         |   |
| Reduction in accrued liabilities through issuance of common stock             |   | $              |  --        |   |   |  $ |       198                  |   |
|   Derivative liability on adoption of ASC Sub Topic 815 – 40, |   |                                                                            |            |   |   |    |                                                     |   |
|  “Contracts in Entity’s Own Stock”                     |   |  $             |  --        |   |   |  $ |       147                  |   |
|                                                                          |   |                                                                            |            |   |   |    |                                                     |   |

----

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

| 1.   | Interim Financial Information |
|----------------|-------------------------------|

----

|                                       |   |   Shares(in thousands) |   | Weighted Average Exercise Price |   |                                             Weighted AverageRemaining ContractualTerm (in years) |   |  Aggregate Intrinsic Value(in thousands) |   |
|--------------------------------------------|--------|----------------------------------|--------|---------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
| Balance, January 1, 2010                   |   |                             | 770    |                            | $      | 0.68                                                                                                                                                                                                                                                                                                                    |   |                                          |   |   |   |
|     Granted            |   |                             | --     |                            |   | --                                                                                                                                                                                                                                                                                                                      |   |                                          |   |   |   |
|     Exercised          |   |                             | (345)  |                            | $      | 0.56                                                                                                                                                                                                                                                                                                                    |   |                                          |   |   |   |
|     Canceled           |   |                             | --     |                            |   | --                                                                                                                                                                                                                                                                                                                      |   |                                          |   |   |   |
|     Forfeited          |   |                             | --     |                            |   | --                                                                                                                                                                                                                                                                                                                      |   |                                          |   |   |   |
| Balance, September  30, 2010     |   |                             | 425    |                            | $      | 0.78                                                                                                                                                                                                                                                                                                                    |   |                                          | 2.3    |   | $ | 133 |   |
| Exercisable, September  30, 2010 |   |                             | 425    |                            | $      | 0.78                                                                                                                                                                                                                                                                                                                    |   |                                          | 2.3    |   | $ | 133 |   |

|  Non-vested Shares          |  Shares (in thousands)                                                                                                                                                                                                                                    |  Weighted-average Grant Date Fair Value                                                                                                                                                       |
|----------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Non-vested at January 1, 2010    |                                   292                                                |                            $2.03                            |
| Granted                          |                                     53                                     |                            $0.95                            |
| Vested                           |                                  (239)                                                    |                            $1.94                            |
| Forfeited                        |                                      --      |                                 -- |
| Non-vested at September 30, 2010 |                                   106                                                |                            $1.69                            |

----

| Level 1 | – Observable inputs such as quoted prices in active markets;                                                                               |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| Level 2 |  – Inputs, other than the quoted prices in active markets, that are observable either directly  or indirectly;              |
| Level 3 |  – Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. |

|                                     Description |   | (Level 3) |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|
| Liabilities:                                                                                                                                                                                                                        |   |      |   |
|    Balance at January 1, 2010                                                                                                                                                                                        |   | $         | 221    |   |
|                                                                                                                                                                                                                                |   |      |   |   |
|    Change in fair value included in operations                                                                                                                                                                       |   |      | (221   | ) |
|                                                                                                                                                                                                                                |   |      |   |   |
|                                                                                                                                                                                                                                |   |      |   |   |
|     Balance, September  30, 2010                                                                                                                                                                      |   | $         | 0      |   |

----

|                                                          |   | In thousands |      |
|---------------------------------------------------------------|--------|--------------|-----------|
| Balance, January 1, 2010                                      |   | $            | 3,528     |   |
|    Dividends accrued                           |   |         | ( 42 | ) |
|    Stock based compensation                    |   |         | 404       |   |
| Redemption of Series D Preferred    Stock |   |         | (100      | ) |
|     Shares repurchased                    |   |         | (8        | ) |
|    Net income                                  |   |         | 1,116     |   |
| Balance – September 30, 2010                            |   | $            | 4,898     |   |

----

|                                       |   | Three Months EndedSeptember 30, |         |   | Nine Months EndedSeptember 30, |   |
|--------------------------------------------|--------|---------------------------------|--------------|--------|------------------------------------------|--------|
|                                       |   | 2010                            |         |   | 2009                                     |   |   | 2010 |   |   | 2009 |   |
| Weighted Average Common shares outstanding |   |                            |  11,563 |   |                                     |   |  10,878 |   |   |   |  11,426 |   |   |   |  10,783 |   |
| Options to purchase common stock           |   |                            |  131    |   |                                     |   |  383 |   |   |   |  198 |   |   |   |  322 |   |
| Restricted stock grants                    |   |                            | 1            |   |                                     |   | 39 |   |   |   | 4 |   |   |   | 32 |   |
| Total diluted shares                       |   |                            | 11,695       |   |                                     |   | 11,300 |   |   |   | 11,628 |   |   |   | 11,137 |   |

|                              |   | Three Months EndedSeptember 30, |   |   | Nine Months Ended September 30, |   |
|-----------------------------------|--------|--------------------------------------|--------|--------|--------------------------------------|--------|
|                              |   | 2010                                 |   |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
| Options to purchase common stock  |   |                                 | 75     |   |                                 |   | 75 |   |   |   | 75 |   |   |   | 75 |   |
| Warrants to purchase common stock |   |                                 | --     |   |                                 |   | 591 |   |   |   | -- |   |   |   | 591 |   |
| Restricted stock grants           |   |                                 | 99     |   |                                 |   | 308 |   |   |   | 99 |   |   |   | 308 |   |
| Total potential common shares     |   |                                 | 174    |   |                                 |   | 974 |   |   |   | 174 |   |   |   | 974 |   |

----

|                                |   | Three Months Ended September 30, |   |   | Nine Months EndedSeptember 30, |   |
|-------------------------------------|--------|----------------------------------|--------|--------|------------------------------------------|--------|
|                                |   | 2010                             |   |   |      2009            |   |   | 2010 |   |   |       2009 |   |
|   SaaS fees               |   | $                                | 2,106  |   |                                     | $      | 2,238 |   |   | $ | 6,482 |   |   | $ | 6,723 |   |
|   Custom engineering fees |   |                             | 210    |   |                                     |   | 236 |   |   |   | 728 |   |   |   | 925 |   |
|                                |   |                             |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Total Revenue                       |   | $                                | 2,316  |   |                                     | $      | 2,474 |   |   | $ | 7,210 |   |   | $ | 7,648 |   |

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Item 2

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| ·   | it requires assumptions to be made that were uncertain at the time the estimate was made; and |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | changes in the estimate, or the use of different estimating methods that could have been selected, could have a material impact on the Company's condensed consolidated results of operations or financial condition. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 3

Item 4T

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Item 6

| 31     | Certifications pursuant to Rules 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.        |
|--------|-------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                    |
| 32     | Certifications pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|   |                                                                                                                    |

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SIGNATURES

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